Buying or Leasing a New Car

Most people love driving a new car off the dealership lot - but the stress of cutting a good deal can break even the toughest consumer. Before you head out and take advantage of some great deal or sale, you need to educate yourself on the legal aspects of buying or leasing a new car - so no one takes advantage of you! Here a few things you need to consider.

First, if you are going by an advertisement you see make sure the deal that is spelled out in the ad is what you are really getting. Typically, rebates and price discounts do not apply to leases unless the ad specifically says so. No matter which option you are choosing, buying or leasing, check your contract very carefully. If you are buying, there will be a purchase contract that spells out all the charges and costs you are paying for. If you are financing the purchase, you'll have another contract dealing specifically with that end of things. Again, look through everything and ask questions if something doesn't make sense.

Also, make sure you know your rights under your state's lemon law. That's the law that protects consumers who have serious defects in their new cars. Here in Massachusetts, the lemon law covers new cars purchased or leased for personal use. The protection period is for one year or 15,000 miles from the date of original delivery, whichever occurs first. "Serious defects" are the ones that substantially impair the use, market value or safety of your car. Usually the law doesn't list what defects are considered "substantial." The burden is on you, the consumer, to prove that a defect is substantial. If you can prove it though, and the defect still exists or reoccurs after a reasonable amount of attempts to fix it, you may have the right to a refund or replacement. With regards to how many chances the dealer or manufacturer or agent gets to fix a defect, it all depends on what state you are in. Here in Massachusetts, under the lemon law they get 3 repair attempts to repair each defect, and a total of 15 business days out of service for all defects. Most places want to do right by you and the law is on your side, so if you have a problem, speak up right away! Just make sure that you keep complete and accurate records. Each state has specific rules on what to do if you run into problems - so educate yourself before you hop behind the wheel of that new car!

Remember, whether you decide to buy or lease, it's all in the contract. If you are leasing, read your lease agreement very carefully and make sure you have considered the legal obligations you will have during and at the end of the lease. For example, before you sign any lease agreement, make sure you check out what it says about "early termination." Usually there is a stiff cost associated with turning in a lease early. And what many people don't realize is that if a car is totaled or stolen, it can be considered an "early termination!" You want to make sure if that's the case in your lease, you talk to your insurance agent about getting you covered in case the worst happens.

Also, with regards to those dings and scratches we all get on our cars, be aware that with a lease you could end up in big financial trouble. What you may consider to be "normal wear and tear" may NOT be what the leasing company considers "normal wear and tear" - and they can nail you for big bucks at the end of your lease. Make sure you check the lease agreement carefully and don't be afraid to ask them to spell it out for you. Remember, a lease agreement is a binding contract. Depending on what it says, it can protect you or it can put you in a very vulnerable position. If you have questions or don't understand some of the language, check with your attorney!

Finally, unless you know for sure you want to buy the car at the end of the lease, make sure you have a "closed-end lease" with a purchase option. This gives you the option to make that decision later on without committing you up-front. Remember, whether you are buying or leasing, you have the legal right to take your time and review the contracts they give you. Don't be pressured. If you need to sleep on, do it! You need to make sure that buying or leasing that new car is a smooth ride from start to finish.

Copyright 2006 - Law Office of Gina M. Ghioldi, P.C.

In accordance with rules established by the Supreme Judicial Court of Massachusetts, this web site must be labeled "advertising." It is designed to provide general information for clients and friends of the firm and should not be construed as legal advice, or legal opinion on any specific facts or circumstances.The attorneys affiliated with the Law Office of Gina M. Ghioldi, P.C. are licensed to practice in Massachusetts. The availability of this site to residents of any other state or country is not intended as a solicitation of clients in those states or countries. Neither the receipt nor the distribution of materials, including the use of private electronic mail, constitutes the formation of an attorney-client relationship. An attorney-client relationship with The Law Office of Gina M. Ghioldi, P.C. or any of the attorneys affiliated with the firm will be formed only upon the execution and delivery of a retainer or contingency fee agreement and the satisfaction of the conditions contained therein. Materials distributed shall not, in any event, be deemed confidential or privileged. We cannot guarantee that all inquiries will get a response, and we cannot guarantee the accuracy of posted information, especially as to each individual situation. All responses in by e-mail are only for the education of the recipient as to the types of issues specifically relevant to their inquiry, and are not legal advice and should not be relied upon by the recipient.